Adeesh Patil based out of a small town in Maharashtra needed some funds to send his daughter for higher studies. He had a piece of land that he had bought from his relative some years back. As it was close to the upcoming highway, it was sure to fetch a good price. He approached his local bank for a loan against this property, that is when he realised that he did not have title over the property.
He approached a local lawyer who told him that he had not got a sale deed executed in his favor and what he possessed was just the Agreement to Sale.
What is a Sale Deed?
Sale Deed is main legal documents that establishes your title to an immovable property. It shows that that the seller has transferred all his /her rights in the property to you. The sale deed also gives you the right to be able to sell your property in future.
A Sale Deed is also called a Conveyance Deed.
When is a Sale Deed Executed?
A Sale Deed is the document that conveys the change of ownership from one party to another. So this needs to be executed when the immovable property in question is ready for change of title.
When two parties initially decide make a real estate transaction, they sign a preliminary document which is called the Agreement to Sale. This document acts a precedent to the Sale Deed and contains all details regarding the rights and obligations on part of both the parties. It should also list the probable date of delivery of the property, payment schedule that the buyer needs to follow, etc.
Once all the obligations are met from the sellers end and the buyer makes required payments, then the property is finally ready for the transfer of title.
The Procedure for Execution of a Sale Deed
Draft Sale Deed: Before proceeding with the final Sale Deed, both the parties generally draw up a draft sale deed to avoid any errors in the final document.
The Draft Sale Deed contains all details of the identification of the property, with survey numbers, location details, description of the property, details of construction, total area, amenities provided, etc. It also contains details regarding various monetary transactions that has happened between the buyer and the seller.
The future obligation of the seller, if any, like maintenance of the property, etc also has to be clearly specified.
Once both the parties are in agreement over the contents of the Draft Sale Deed, the same details are taken over to the Final Document.
Before moving over to the final step of registration, the seller needs to make sure that all obligations from his end like payment of relevant taxes, full payment of existing loans and all permits and certificates necessary for occupying the property are made available.
Registration of a Sale Deed
Sale Deed is a document that needs to be registered with the Registrar of Properties having jurisdiction over that particular locality.
Before proceeding for executing a Sale Deed you should be aware of the charges and the mode of payment of the same. To ensure execution of a sale deed, there is Stamp Duty and Registration Charges that need to be paid. The onus is on the buyer to pay the right amount for these charges. It is good to make sure of the applicable charges in advance and be ready with Demand Drafts, Franked or e-stamp papers as required.
The process of registration requires presence of both the parties in person. There is also a requirement of presence of 2 witnesses to make process legal binding.
An appointment also needs to be made with the Sub Registrar of Properties as the registration can only happen on in his /her presence.
Good morning,
Can Executant mortgage without possession in 2019 which was already sold with sale deed 2014